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Bonds Issue Date Maturity Issuer Amount Offer Price Type of Security Coupon (%) Spread To Treasury Moody's S&P Bookrunner(s) 8/2/02 8/9/17 EDP Finance 312.2 98.936 Fxd/Straight Bd 6.625 180 A2 A+ Deutsche/Goldman/UBS 8/6/02 2/13/04 RWE 49 100.045 Mdm-Trm Fl Nts Floats - A1 A+ Lehman M&A Date Date Effective Target Name Target Advisors Target Country Acquiror Acquiror Acquiror Country Value ($mil) Announced Advisors 8/1/02 - Gelsenwasser (E.ON) - Germany RWE - Germany - 8/1/02 - Kraftwerk Laufenberg(Watt AG) - Switzerland Enalpin - Switzerland - 8/2/02 - Blackstone Station - U.S. Harvard University - U.S. 14.6 8/5/02 8/5/02 Electricity Direct - U.K. British Gas Trading(Centrica) - U.K. 98.916 8/5/02 8/5/02 Thuega - Germany E.On - Germany - 8/5/02 8/5/02 Zeag Zementwerk Lauffen Dresdner Kleinwort Benson Germany Energie Baden-Wuerttemberg AG - Germany - 8/6/02 - Nordvestjaellands Energi - Denmark NESA - Denmark 337.664 Source: Thomson Financial Securities Data Company. For more information, call Rich Peterson at (973) 645-9701.

Acadia Power Partners, a joint venture between Calpine and Cleco, will put out feelers in the project finance market later this month to gauge appetite for a $575 million loan refinancing a now operational 1,160 MW plant, but it isn't expecting an easy ride. Kathleen Nolan, treasurer at Cleco in Pineville, La., says the structure would be a clean, straightforward mini-perm loan, but adds that tolling arrangements with Calpine and Aquila are likely to make credit questions key to the deal's success. "It's going to be difficult," she admits.

Volumetric risk exists whenever future supply or demand for a product or service is unknown or uncertain. Few industries are as familiar with this risk as the power industry, where future demand can be especially hard to gauge. The amount of power consumed in a particular area can vary dramatically from day to day, week to week, month to month and year to year.

CMS Energy has signed an innovative agreement with a specially-created limited partnership allowing it to offer counterparties to long-term gas and power trades an A rated credit profile. The Dearborn, Mich.-based player has been buffeted by revelations of round-trip trading this year and an ensuing slide in its corporate credit corporate rating to BB minus. That resulted in its trading unit chalking up a net operating loss of $18 million in the second quarter, a slide of $57 million over the corresponding quarter last year.

AES is looking to sign up banks to relaunch a stalled 1,200 MW power generation project in southeastern Spain next month. The embattled independent power producer is holding discussions with a number of lenders including ABN AMRO, BNP Paribas, Credit Agricole Indosuez, Credit Lyonnais and Société Générale, about financing the roughly EUR600 million deal. The strong Gallic flavor of the lineup reflects the fact that AES has signed a supply and offtake contract with Paris-based utility Gaz de France. One banker says non-recourse financing is likely to be structured as a club-type loan, with these banks and possibly more invited into the deal before a small syndication round.

Pepco Holdings, a newly created utility holding company, is tapping a $1.5 billion bridge loan to fund the merger of Potomac Electric Power and Conectiv, after pulling a private placement of the same size. The BBB rated bond (PFR, 7/29) was nixed after spreads in the wider energy sector ballooned, notes Peter Otersen, a credit analyst who tracks the company at Standard & Poor's. The loan funding comes from a syndicate headed by Bank One and Merrill Lynch, which were lined up to underwrite the private placement.

Dan Gordon, the former-head of the Merrill Lynch U.S. power and natural gas trading team snapped up by Allegheny Energy for $490 million last year, is stepping down from the top trading job at the Hagerstown, Md., player. Allegheny last week announced it is paring back its trading effort and will focus on leveraging its Midwest and Mid-Atlantic assets. Gordon is stepping down from his role as president of global markets and will become a strategic advisor. He will advise on downscaling the operation and also on the legal action related to the company's long-term California contracts, says spokeswoman Janice Lantz. California has been looking to re-negotiate a number of contracts signed at the height of its power shortage. Lantz says Allegheny is not among the counterparties that have re-negotiated. Calls to Gordon were not returned.

Paul Henry, a seasoned weather pro who has been out of the market since leaving Sempra Energy Trading at the turn of the year, has joined the Sugar Land, Texas, office of international OTC energy broker Amerex Energy. Henry, who also headed Dynegy's weather group before heading to Sempra (PFR, 4/22/01), declined comment.

The Jackson Electric Authority (JEA) plans to issue $542 million of electric refunding revenue bonds to refinance various tranches of four bond offerings it originally issued to finance the construction of the 1,276 MW St. Johns River power station in Jacksonville, Fla. Helen Kehrt, director of financial management services, says the new offering likely will save JEA approximately $36 million because it's tapping the market when interest rates are low.

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